[WSBAPT] revocable trust

[Diane Kiepe]

Shannon,

I would say this is a gift of a life estate with the life tenants
assuming all traditional life tenant duties under WA law, so there is no
sale and thus no excise tax.  The parents paying these costs creates no tax
because again, they are just paying for items that, under WA law, unless
contracted otherwise, they are required to cover. I'm curious what others
have to say.

That being said, and I know you didn't ask this, your clients could be at
risk of losing the capital gains exemption for a future sale of this
property if this is no longer their primary residence after a certain
amount of time passes.

Best of luck,

PLEASE NOTE THAT MY RESPONSE TIME MAY BE DELAYED DUE TO PENDING MATTERS.  I
WILL ALSO BE TRAVELING FROM AUGUST 26, 2026, UNTIL AUGUST 30, 2026, WITH
LIMITED ACCESS TO EMAIL.  I WILL ALSO BE IN TRAIL THE WEEK OF SSEPTEMBER 7,
2026.

Diane Kiepe, J.D., LL.M. Taxation
Kiepe Estate and Probate, PLLC
diane at kiepelaw.com
200 N. Mullan Rd., Suite 203
Spokane Valley, WA  99206
509-808-2087
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On Wed, Aug 12, 2026 at 8:24 AM Shannon Jones <
shannonj at campbellbarnettlaw.com> wrote:

> Listmates, I am trying to determine the excise and income tax implications
> of the following: My clients, married spouses, want to transfer their
> property into a revocable living trust and make their parents the current
> beneficiaries as to a life estate in the property subject to the
> requirement that the parents will pay all expenses related to their
> occupancy (taxes, insurance, utilities). Is transfer to the trust subject
> to WA excise tax due to the life estate grant in the trust? Will parents’
> payment of these expenses result in any form of taxable transaction? Shannon
>
>
>
> *Shannon R. Jones | Attorney *
>
> Campbell Barnett PLLC
>
> Direct:  253.848.3515
>
> Office: 253.848.3513| Fax: 253.845.4941
>
> 317 South Meridian
>
> Puyallup, WA 98371
>
> shannonj at campbellbarnettlaw.com
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